QUESTION
Do we need to reopening a Discharged Bankruptcy?
Asked on Jan 31st, 2012 on Bankruptcy - Georgia
More details to this question:
Our Chap 7 Bankruptcy was discharged in 2009. My wife is currently involved in a personal case in which she may be awarded damages. Are we required to inform the Bankruptcy Court of these new funds? And can the bankruptcy be reopen and her awarded monies go to the court?
7 ANSWERS
Banking Attorney serving Miami, FL
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The Barrister Firm, P.A.
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The simple answer is no, because once the discharge occurred, the creditors debts were dissolved. There may however be an exception if the case was going on at the time of the initial bankruptcy and you failed to disclose the case in the bankruptcy proceeding. Under the foregoing scenario, a creditor could attack the discharge based upon false reporting or failure to report the litigation that led to the award during the bankruptcy proceedings.
Answered on Feb 08th, 2012 at 12:16 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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If the accident happened after the bankruptcy case was filed then no need to report anything. If the accident had happened before the case was filed then it should have been reported in the petition and exempted since your filed already knew she had a claim and she was required to report all claims in the petition. Whether or not you should reopen the case now or just inform the trustee of the details is something you need to discuss with your attorney.
Answered on Feb 08th, 2012 at 10:23 AM
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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Bereliani Law Firm, PC
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Not necessary. Typically you would need to advise the Chapter 7 bankruptcy Trustee and court/creditors of such windfalls of money when received within 6 months. Your case is more than 2 years old.
Answered on Feb 08th, 2012 at 10:23 AM
Chapter 7 Bankruptcy Attorney serving Lisle, IL
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Mankus & Marchan, Ltd.
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Generally speaking, only pre-petition property becomes part of the Chapter 7 bankruptcy estate. Therefore, your wife need not report any award of damages she receives after the discharge in bankruptcy.
Answered on Feb 08th, 2012 at 10:22 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Upon entry of discharge the assets of the debtor, which are owned by the estate, revert to the debtor. There would be no reason to re-open the banruptcy to liquidate assets that belong to the discharged debtor.
Answered on Feb 08th, 2012 at 10:21 AM
It may be possible that the asset was part of the bankruptcy estate. You should consult a lawyer.
Answered on Feb 08th, 2012 at 10:20 AM
Glen Edward Ashman
That depends on when the cause of action began (and you did not tell us that needed detail).
Answered on Feb 08th, 2012 at 10:19 AM